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Municipal Bond Tax Exemption in Emerging Economies: An Overview of the Issues

Citation

Leigland, J. (1997). Municipal Bond Tax Exemption in Emerging Economies: An Overview of the Issues. Unknown Publisher.

Abstract

Officials in some emerging countries are investigating whether or not U.S.-style tax exemption of interest payments on such bonds is a cost-effective way of stimulating municipal market development. This paper explores this question, by reviewing the history of tax exemption in the U.S., the long legal and political debate over the use of the subsidy, the economic arguments for and against its use, the approach taken toward tax exemption by selected emerging economies, and finally some of the considerations that might argue in favor of using tax exemption in the emerging economy context.